Patients v Sutter Health
Sutter Health Settles Class Action
Sutter Health, of Sacramento, California, settled a class-action lawsuit related to its billing of uninsured patients, under which the system agrees to abide by its charity-care policy, adopted in March 2006, for at least three more years. Sutter also agreed to notify uninsured patients treated since September 2000 that they may be eligible for refunds or deductions of 25% to 45% off their hospital bills.
Sutter officials said they could not estimate the amount of potential refunds, but more than 80% of the 22-hospital system's uninsured patients have not paid any part of their bills. In a news release, Sutter claims the agreement "puts another stamp of approval" on its charity care and discount policies. Plaintiffs' attorney said "This settlement is groundbreaking and substantial. Sutter has effectively ended price discrimination against uninsureds and has agreed to maintain policies that will protect uninsured patients."
The lawsuit seeks to recover costs for uninsured patients.
